iHeart buys 14 days with a court order against bondholders.
It found a friendly reception in its hometown of San Antonio, where a judge gave it the temporary restraining order that rescinds the so-called notices of default filed by a group of lenders. It’s good for 14 days, and iHeart says “for good cause shown, the court may extend the TRO up to 14 additional days.”A $6 billion problem for iHeart. The bondholder group that includes Canyon Capital Advisors, D.E. Shaw, Davidson Kempner and Franklin Advisors is ultimately owed more than $6 billion. (They might also hold other classes of debt.) On Monday they notified iHeart that they consider it in default, for moving $516 million in Clear Channel Outdoor Holdings stock (those 100 million shares) over to its “Broader Media” subsidiary. Yesterday’s story here about a potential “cascade of debt” means that within 60 days, these creditors would want all their $6 billion paid.
Thursday, March 10, 2016
The radio home of Limbaugh, Hannity, Beck & other gasbags is getting some heat from bondholders, according to Tom Taylor Now:
Posted by Steve J. at 1:58 PM